Bang & Olufsen downgrades profit expectations 2007/08

BANG & OLUFSEN A/S 		                     ANNOUNCEMENT NO. 08.02
7 JULY 2008

Bang & Olufsen a/s downgrades profit expectations 2007/08

Operating profit is now expected to be in the region of DKK 195 million against
the previously announced DKK 225-275 million. Profit before tax is expected to
total approx. DKK 155 million, i.e. DKK 45-95 million less than previously
estimated. This is based on a turnover of DKK 4,100 million. 

The adjustment is primarily based on the following factors: 
	Uncertain global market developments and a reduced order book at the end of
the financial year. 
	Extensive winding up procedures involving extraordinary expenditure in
connection with the conclusion of pending legal proceedings in Denmark and
abroad. 
	Increased losses and provisions to counter losses on receivables etc. 

After the close of the financial year, Bang & Olufsen has taken full control of
the strategically important subsidiary, ICEpower. 

The market
The uncertain global economy has made it particularly difficult to anticipate
market developments - especially in the US and Western Europe. 

Settlement of legal proceedings
The Board has deemed it a priority to conclude certain pending legal disputes.
Negotiations to this end have in a satisfactory way brought a number of these
issues to a conclusion. An offshoot of an arbitration case, which in
mid-December last year went against Bang & Olufsen, was also successfully
closed. As stated in announcement 07.11 of 9 January, 2008, the outcome of the
December arbitration case cost Bang & Olufsen DKK 25 million. 

Provisions
The Board of Directors of Bang & Olufsen has consistently wished for the
company's risks in the debt portfolio to be covered through provisions in the
accounts.  In total, DKK 48 million was expensed in the 2007/08 financial year
against DKK 13 million last year. Of this DKK 16 million was expensed in the
fourth quarter. 

ICEpower
Bang & Olufsen is acquiring the shareholding of one of the co-founders of the
subsidiary, Bang & Olufsen ICEpower a/s, Director Karsten Nielsen, who is
leaving the company. 
ICEpower has developed ground-breaking technology which features in all Bang &
Olufsen's main products. Consequently, it is of crucial strategic importance
for Bang & Olufsen to secure full control of the company. 
The 10 per cent shareholding has been acquired for DKK 23 million. 

Commented Chairman Jørgen Worning:
”With a solvency percentage in excess of 50 per cent, Bang & Olufsen is well
consolidated to absorb the necessary provisions and invest in the Group's key
areas. I am delighted that we have succeeded in concluding these outstanding
issues before we hand over responsibility for daily operations to the company's
new CEO Kalle Hvidt Nielsen on August 1. 
Bang & Olufsen's ongoing cost adjustment is expected to take full effect in the
2008/09 financial year. 
The Board of Directors expects that this year's profits will show an
improvement on the 2007/08 financial year, which will be announced on August
13. 


Jørgen Worning	Peter Thostrup
Chairman	Executive Vice-President

# # #

For further information about this announcement, please contact:
Chairman Jørgen Worning
Executive Vice President Peter Thostrup
Head of Information Tino Pedersen, tel +45 61 55 41 41